cache_path is the incorrect thing to check here.

2 files changed, 9 insertions, 4 deletions

diff --git a/lib/bundler/source.rb b/lib/bundler/source.rb
index b5d8c06510..040403f699 100644
--- a/lib/bundler/source.rb
+++ b/lib/bundler/source.rb
@@ -553,10 +553,9 @@ module Bundler
       end
 
       def load_spec_files
-        return super if cache_path.exist?
-        raise PathError
-      rescue PathError
-        raise PathError, "#{to_s} is not checked out. Please run `bundle install`"
+        super
+      rescue PathError, GitError
+        raise GitError, "#{to_s} is not checked out. Please run `bundle install`"
       end
 
     private
diff --git a/spec/runtime/setup_spec.rb b/spec/runtime/setup_spec.rb
index 9e3dfdac36..271a75f5cd 100644
--- a/spec/runtime/setup_spec.rb
+++ b/spec/runtime/setup_spec.rb
@@ -235,6 +235,12 @@ describe "Bundler.setup" do
 
       err.should_not include "This is not the git you are looking for"
     end
+
+    it "works even when the cache directory has been deleted" do
+      bundle "install vendor"
+      FileUtils.rm_rf vendored_gems('cache')
+      should_be_installed "rack 1.0.0"
+    end
   end
 
   describe "when excluding groups" do